As of any given date, the benefit determined under § 45-4B calculated on the basis of final monthly average salary as of the date of determination and multiplied by a fraction, the numerator of which shall be the participant's aggregate service determined as of such date and the denominator of which shall be the projected aggregate service of the participant as if the participant continues in employment until attainment of normal retirement age. Notwithstanding anything contained herein to the contrary, in no event shall the fraction exceed 1.0. The accrued benefit shall include any service increment benefit determined pursuant to § 45-4D attributable to the participant's aggregate service as of the determination date. The accrued benefit shall not exceed the maximum limitation, determined as of the date of computation, provided under § 45-4G. All accrued benefits are subject to all applicable limitations, reductions, offsets, and actuarial adjustments provided pursuant to the terms of the plan prior to the actual payment thereof.

The total amount contributed by any participant to this fund or its predecessor by way of payroll deduction or otherwise, plus interest credited at 3% per annum. Interest shall be credited in the form of a compound interest rate from the midpoint of the plan year during which the contributions were paid through the date that a distribution of accumulated contributions under § 45-6D or 45-7B shall be paid or payment of benefits shall commence.

Two forms of payment of equal actuarial present value on
a specified date. The actuarial present value shall be determined
by use of the UP-1984 Mortality Table and 7% interest unless otherwise
specifically provided herein.

The total period or periods of the participant's employment
with the employer, whether or not interrupted. Notwithstanding the
preceding sentence, should any such participant receive a distribution
of accumulated contributions with respect to a period of employment
for which employee contributions are required, such period of employment
shall not be included in aggregate service thereafter unless, at the
commencement of the next period of employment, the participant repays
to the fund the amount of such distribution with interest. For purposes
of this definition, interest shall accrue as of the date the employee
receives a distribution of accumulated contributions and shall be
computed at the same rate and in the same manner as described in the
definition of "accumulated contributions." Aggregate service shall
be calculated in completed years and shall not include any period
of a voluntary leave of absence without pay.

The person or entity designated by the participant to receive
a distribution of the participant's accumulated contributions should
the participant die prior to becoming entitled to a retirement benefit.
In the event that a participant does not designate a beneficiary or
the beneficiary does not survive the participant, the beneficiary
shall be the surviving spouse, or if there is no surviving spouse,
the issue, per stirpes, or if there is no surviving issue, the estate;
but if no personal representative has been appointed, to those persons
who would be entitled to the estate under the intestacy laws of the
Commonwealth of Pennsylvania if the participant had died intestate
and a resident of Pennsylvania.

The total remuneration of the employee, whether salary or
hourly wages, including overtime pay, holiday pay, longevity pay and
any other form of compensation paid by the employer for police services
rendered. Compensation shall be limited on an annual basis to the
amount specified for government plans pursuant to Code Section 401(a)(17),
as adjusted under Code Section 415(d).

The date when a participant is determined by the plan administrator
to be incapacitated due to total and permanent disability or the date
when the participant's employment terminates due to such total and
permanent disability, if later.

Any period of time for which an employee is
paid, either directly by the employer or through a program to which
the employer has made contributions on behalf of the employee, a fixed,
periodic amount in the nature of salary continuation payments for
reasons other than the performance of duties (such as vacation, holidays,
sickness, entitlement to benefits under workers' compensation or similar
laws);

Any period during which an employee is entitled
to disability benefits under this plan, provided that the employee
returns to employment within three months of the date on which it
is determined that the employee is no longer totally and permanently
disabled if such determination occurs prior to the date a participant
attains normal retirement age;

Any period of voluntary or involuntary military
service with the Armed Forces of the United States of America, provided
that the participant has been employed as a regular full-time member
of the employer's police force for a period of at least six months
immediately prior to the period of military service and the participant
returns to employment within six months following discharge from military
service or within such longer period during which employment rights
are guaranteed by applicable law or under the terms of a collective
bargaining agreement with the employer;

Any period of qualified military service as determined under
the requirements of Chapter 43 of Title 38, United States Code, provided
that the participant returns to employment following such period of
qualified military service, and the participant makes payment to the
plan in an amount equal to the participant contributions that would
otherwise have been paid to the plan during such period of qualified
military service. The amount of participant contributions shall be
based upon an estimate of the compensation that would have been paid
to the participant during such period of qualified military service
as determined by the average compensation paid to the participant
during the 12 months immediately preceding the period of qualified
military service. The amount of participant contributions calculated
must be paid into the plan before the end of the period that begins
on the date of reemployment and ends on the earlier of the dates that
end the period that has a duration of three times the period of qualified
military service or the date that is five years after the date of
reemployment;

Any period of voluntary or involuntary military service with
the Armed Forces of the United States of America, not to exceed a
total of three years, which occurred prior to the date on which a
participant first became employed as an employee of the employer,
provided that the participant shall purchase such credit and that
such participant is not entitled to receive, eligible to receive or
is receiving retirement benefits for such military service under a
retirement system administered and wholly or partially paid for by
any other governmental agency except military retirement pay earned
by a combination of active and nonactive duty with a Reserve or National
Guard component of the armed forces which is payable upon the attainment
of a specified age and period of service under 10 U.S.C. § 67
(relating to retired pay for nonregular service). The purchase price
for such service shall be computed by multiplying the average normal
cost rate for the plan as certified by the Public Employee Retirement
Commission and not to exceed 10% times the participant's average annual
rate of compensation during the first three years of employment and
multiplying the result times the number of years and fractions thereof
being purchased. Interest shall be paid at a rate of 4.75%, compounded
annually from the first date of employment to the date of payment.

The average monthly salary earned by the participant
and paid by the employer during the final 36 months immediately preceding
termination of active employment. Salary shall include the regular
gross pay of the employee, whether salary or hourly wages, including,
overtime pay, holiday pay, longevity pay and other types of additions
to compensation by the employer for police services rendered. Salary
shall exclude for this purpose any single sum or extraordinary payments
made which are not directly attributable to active employment during
the averaging period, including but not limited to payment for accumulated
sick leave, payment of a longevity bonus, or payment of a back pay
damage award.

Final monthly average salary shall be calculated by taking into account only those periods during which an employee receives salary, as that term is defined in this definition. Therefore, for example, the final monthly average salary for a participant who receives disability benefits from this plan or who is voluntarily or involuntarily serving in the United States Armed Forces during the final 36 months of aggregate service shall be based on the period during which the employee last received salary (as defined in Subsection A) from the employer.

Salary used to determine final monthly average
salary shall be limited on an annual basis to the amount specified
for government plans in accordance with Code Section 401(a)(17), as
adjusted under Code Section 415(d).

A written document prepared in the form specified by the
plan administrator. If such notice or election is to be provided by
the employer or the plan administrator, it shall be mailed in a properly
addressed envelope, postage prepaid, to the last known address of
the person entitled thereto, on or before the last day of the specified
notice or election period. If such notice or election is to be provided
to the employer or the plan administrator, it must be received by
the intended recipient on or before the last day of the specified
notice or election period.

The committee or the individual appointed for the purpose
of supervising and administering the provisions of the plan. In the
event that no such appointment is made, the plan administrator shall
be the Board.

A retirement annuity or retirement income endowment policy
(or a combination of both) or any other form of insurance contract
or policy which shall be deemed appropriate in accordance with the
provisions of applicable law.

A condition of physical or mental impairment due to which a participant is unable to perform the usual and customary duties of employment and which is reasonably expected to continue to be permanent for the remainder of the participant's lifetime. For purposes of this definition and § 45-5, a condition shall not be treated as a total and permanent disability unless such condition is a direct result of and occurs in the line of duty of employment. Therefore, an employee whose physical or mental impairment does not occur in the line of duty or which is the result of alcoholism, addiction to narcotics, perpetration of a felonious criminal activity or is willfully self-inflicted is not entitled to receive disability benefits under the plan.

Eligibility requirements. Each employee who is employed
as a regular, full-time permanent member of the Police Department
of the employer shall participate herein as of the date on which such
employee's employment first commences or recommences, provided all
prerequisites to participation under this plan shall have been fulfilled,
including but not limited to completion of all forms required by the
plan administrator. Each employee who was a participant in the plan
on the day prior to the restatement date shall continue to be a participant
on and after the restatement date subject to the terms and conditions
of the plan as set forth herein.

Participation requirements. The Board shall furnish the plan administrator with written notification of the appointment of any new full-time permanent employee who is eligible for participation hereunder. Each participant hereunder shall be required to make contributions to the plan, as provided in § 45-3A hereof, and shall execute and complete any enrollment or application forms as required by the plan administrator.

Designation of beneficiary. Any new, full-time employee
who becomes a participant hereunder shall provide a written notice
in the manner prescribed by the plan administrator which designates
a beneficiary at the time participation commences. The participant's
election of any such beneficiary may be rescinded or changed, without
the consent of the beneficiary, at any time, provided the participant
provides the written notice of the changed designation to the plan
administrator in the manner prescribed by the plan administrator.
Any designation of a beneficiary made in any manner other than one
acceptable to the plan administrator shall be null and void and have
no effect under the terms of this plan.

Change in status. A participant who remains in the
service of the employer but ceases to be an employee eligible for
participation hereunder or ceases or fails to make any contributions
which are required as a condition of participation hereunder shall
have no further benefit accruals occur until the individual again
qualifies as a participant hereunder eligible to resume such accrual
of benefits.

Recordkeeping. The employer shall furnish the plan
administrator with such information as will aid the plan administrator
in the administration of the plan. Such information shall include
all pertinent data on employees for purposes of determining their
eligibility to participate in this plan.

Participant contributions. Each participant shall,
as a requirement of participation, pay regular contributions to the
pension fund in an amount equal to 5% of the participant's compensation.
Each participant shall complete the necessary forms to authorize the
payment of participant contributions by way of payroll deduction,
if necessary.

Reduction of participant contributions. Notwithstanding the preceding Subsection A, if an actuarial study performed by the actuary shows that the condition of the pension fund is such that payments into the pension fund by participants may be reduced below the minimum percentages prescribed in Subsection A or may be eliminated, and that if such payments are reduced or eliminated, contributions by the employer will not be required to keep the pension fund actuarially sound, the employer may, by ordinance or resolution, reduce or eliminate payments into the pension fund by participants.

Employer contributions. The actuary, in accordance
with the Act, shall determine the minimum municipal obligation of
the employer. The employer shall pay into the pension fund, by annual
appropriations or otherwise, the contributions necessary to satisfy
the minimum municipal obligation. Notwithstanding the foregoing, nothing
contained herein shall preclude the employer from contributing an
amount in excess of the minimum municipal obligation.

State aid. General municipal pension system state
aid or any other amount of state aid received by the employer in accordance
with the Act from the commonwealth may be deposited into the pension
fund governed by this plan in amounts determined by the Board and
shall be used to reduce the amount of the minimum municipal obligation
of the employer.

Gifts. The Board is authorized to take by gift, grant,
devise or otherwise any money or property, real or personal, for the
benefit of the plan and cause the same to be held as a part of the
pension fund. The care, management, investment and disposal of such
amounts shall be vested in the Board or its delegate, the plan administrator,
subject to the direction of the donor and not inconsistent with applicable
laws and the terms of the plan.

Employer reversion. At no time shall it be possible for the plan assets to be used for, or diverted to, any purpose other than for the exclusive benefit of the participants and their beneficiaries, including payment of any reasonable plan expenses. Notwithstanding the foregoing, any contributions made by the employer may be returned to the employer if the contribution was made due to a mistake and the contribution is returned within one year of the date on which the discovery of the mistaken payment of the contribution was made or reasonably should have been made or the plan is terminated, as provided in § 45-10.

Normal retirement benefit. Each participant who shall become entitled to a benefit pursuant to Subsection A shall receive a benefit paid monthly in an amount equal to 50% of the participant's final monthly average salary as determined herein.

Late retirement. A participant may continue in employment beyond the attainment of normal retirement age subject to the employer's rules and regulations regarding retirement age. If a participant who has met the requirements of Subsection A continues in employment beyond normal retirement age, there shall be no retirement benefits paid until employment ceases and the participant's retirement actually begins. The retirement benefit of a participant who continues employment after attainment of normal retirement age shall be calculated in accordance with Subsection B on the basis of the final monthly average salary as of such participant's actual retirement and shall commence on the participant's late retirement date.

Service increment benefit. Notwithstanding anything contained herein to the contrary, each participant who shall retire upon completion of the 26th anniversary of aggregate service or thereafter may be entitled to receive a monthly service increment benefit. Such service increment benefit shall only be available to a participant who shall retire on a retirement date after attainment of normal retirement age and whose aggregate service for purposes of this subsection shall only include periods of time when the participant actively renders service in employment and shall not include any period of time during which the participant received a disability benefit under the terms of this plan or was not otherwise in active employment. Such service increment benefit shall be an amount equal to $100 and shall be paid monthly in addition to the amount of normal retirement benefit calculated pursuant to Subsection B.

Payment of benefits. Retirement benefit payments shall
be payable as of the first day of the month coincident with or next
following, the participant's retirement date and the first day of
each month thereafter during the participant's lifetime. A participant
must complete an application for benefit in the manner prescribed
by the plan administrator and deliver such application to the plan
administrator at least 30 days prior to the date on which benefit
payments shall commence. Notwithstanding anything contained herein
to the contrary, no retirement benefit payments nor any other payments
shall be due or payable on or before the date that is 30 days after
the date the plan administrator receives the application for benefits.
Payment of benefits hereunder shall cease as of the date of death
of the participant.

Cost-of-living adjustments. Each participant who shall retire and receive a retirement benefit determined pursuant to Subsection B hereunder shall be entitled to receive annual cost-of-living increases to the amount of benefit payable to such participant under Subsection B. Such cost-of-living increases shall not exceed any of the following limits: the percentage increase in the CPI-W for the year in which the participant was last employed as an employee of the employer; the total retirement benefits payable under this plan shall not exceed 75% of the participant's final monthly average salary; the total cost-of-living increase shall not exceed 30% of the participant's original retirement benefit under this plan; and the cost-of-living increases shall not impair the actuarial soundness of the pension fund.

Maximum benefit limitations. Notwithstanding any provision
of this plan to the contrary, no benefit provided under this plan
attributable to contributions of the employer shall exceed, as an
annual amount, the amount specified in Code Section 415(b)(1)(A),
as adjusted pursuant to Code Section 415(d), assuming the form of
benefit shall be a straight life annuity (with no ancillary benefits).
The limitations described in this subsection shall be governed by
the following conditions and definitions:

Benefits paid or payable in a form other than a straight
life annuity (with no ancillary benefits) or where the employee contributes
to the plan or makes rollover contributions shall be adjusted on an
actuarially equivalent basis in accordance with applicable regulations
to determine the limitation contained herein;

In the case of a benefit which commences prior to
the attainment of age 62 by the participant, the limitation herein
shall be adjusted on an actuarially equivalent basis to the amount
determined pursuant to this subsection commencing at age 62; however,
in the case of a qualified participant (a participant with respect
to whom a period of at least 15 years of service, including applicable
military service, as a full-time employee of a police or fire department
is taken into account in determining the amount of benefit), the limitation
contained herein shall not apply;

In the case of a benefit which commences after attainment
of age 65 by the participant, the limitation herein shall be adjusted
on an actuarially equivalent basis in accordance with applicable regulations
to the amount determined commencing at age 65;

Benefits paid to a participant which total less than $10,000 from all defined benefit plans maintained by the employer expressed as an annual benefit shall be deemed not to exceed the limitation of this subsection, provided that the employer has not at any time maintained a defined contribution plan in which the participant has participated; however, in the case of a participant who is not receiving a disability retirement benefit pursuant to § 45-5B or a survivor benefit pursuant to § 45-6B or E with fewer than 10 years of participation, the limitation expressed in this Subsection G(4) shall be reduced by 1/10 for each year of participation less than 10 but in no event shall this limitation be less than $1,000;

The limitations expressed herein shall be based upon
plan years for calculation purposes, shall be applied to all defined
benefit plans maintained by the employer as one defined benefit plan
and to all defined contribution plans maintained by the employer as
one defined contribution plan, and shall be applied and interpreted
consistent with Code Section 415 and regulations thereunder as applicable
to government plans in general and this plan in particular; and

In the case of a Survivor Benefit under § 45-6B or E or a disability retirement benefit under § 45-5B, the adjustment under Subsection G(2) hereof shall not apply, and the applicable limitation shall be the limitation contained herein without regard to the age of the benefit recipient.

Over a period beginning not later than the required
beginning date and extending over the life of such participant or
over the lives of such participant and a designated beneficiary (or
over a period not extending beyond the life expectancy of such participant
or the joint life expectancies of such participant and a designated
beneficiary).

If a participant who is entitled to benefits under this plan dies prior to the date when the entire interest has been distributed after distribution of the benefits has begun in accordance with Subsection H(1)(b) above, the remaining portion of such benefit shall be distributed at least as rapidly as under the method of distribution being used under Subsection H(1)(b) as of the date of the death.

If a participant who is entitled to benefits under
this plan dies before distribution of the benefit has begun, the entire
interest of such employee shall be distributed within five years of
the death of such employee, unless the following sentence is applicable.
If any portion of the employee's interest is payable to (or for the
benefit of) a designated beneficiary, such portion shall be distributed
over the life of such designated beneficiary (or over a period not
extending beyond the life expectancy of such beneficiary), and such
distributions begin not later than one year after the date of the
employee's death or such later date as provided by regulations issued
by the Secretary of the Treasury, then for purposes of the five-year
rule set forth in the preceding sentence, the benefit payable to the
beneficiary shall be treated as distributed on the date on which such
distributions begin. Provided, however, that notwithstanding the preceding
sentence, if the designated beneficiary is the surviving spouse of
the participant, then the date on which distributions are required
to begin shall not be earlier than the date upon which the employee
would have attained age 70 1/2 and, further provided, if the
surviving spouse dies before the distributions to such spouse begin,
this subsection shall be applied as if the surviving spouse were the
employee.

Any amount paid to a child shall be treated as if
it had been paid to the surviving spouse if such amount will become
payable to the surviving spouse upon such child's reaching majority
(or other designated event permitted under regulations issued by the
Secretary of the Treasury).

Assignment. The pension benefit payments prescribed
herein shall not be subject to attachment, execution, levy, garnishment
or other legal process and shall be payable only to the participant
or designated beneficiary and shall not be subject to assignment or
transfer.

Retired participants. Any participant who shall have retired prior to the restatement date shall not have the benefit altered in any way by the provisions of this amended and restated plan except where otherwise expressly provided herein. Such retired participants shall continue to have their benefits governed by the terms of the plan in effect on the day preceding the restatement date. Any participant who shall have terminated employment and elected to receive a deferred retirement benefit under § 45-7C shall have such benefit determined based upon the provisions of the plan in effect as of the date of such termination of employment and shall not have the benefit altered by the provisions of this amended and restated plan.

Limitation of liability. Nothing contained herein
shall obligate the employer, the plan administrator, any fiduciary
or any agent or representative of any of the foregoing to provide
any retirement or other benefit to any participant or beneficiary
which cannot be provided from the assets available in the pension
fund, whether such benefits are in pay status or otherwise payable
under the terms of the plan. The Board retains the right to amend
or terminate this plan consistent with applicable law at any time,
with or without cause and whether or not such action directly or indirectly
results in the suspension, reduction or termination of any benefit
payable under the plan or in pay status, and without liability to
any person for any such action.

Personal right of participant. The right to receive
any benefits under this plan is a personal right of the participant
and shall expire upon the death of the participant. No heir, legatee,
devisee, beneficiary, assignee or other person claiming by or through
a participant shall have any interest in any benefits hereunder unless
clearly and expressly so provided by the terms of this plan or the
provisions of applicable law. A participant's election, failure to
make an election or revocation of an election hereunder shall be final
and binding on all persons.

Nonduplication of benefit. To avoid any duplication
of benefits, a participant who is receiving a retirement benefit under
the plan and who shall resume employment shall have benefit payments
suspended until the first day of the month coincident with or next
following the date such employment shall cease. Upon resumption of
benefit payments, such participant shall receive the greater of the
amount of the suspended benefit or the amount of benefit based upon
final monthly average salary and aggregate service as of the date
that such period of resumed employment shall cease.

Incorporation of Code Section 415 by reference. Notwithstanding anything contained in Subsection G to the contrary, the limitations, adjustments, and other requirements prescribed in Subsection G shall at all times comply with the provisions of Code Section 415 and the regulations thereunder (as such apply to governmental plans), the terms of which are specifically incorporated herein by reference.

This section applies to distributions made on or after
December 31, 2001. Notwithstanding any provision of the plan to the
contrary that would otherwise limit a distributee's election under
this section, a distributee may elect, at the time and in the manner
prescribed by the plan administrator, to have any portion of an eligible
rollover distribution that is equal to at least $500 paid directly
to an eligible retirement plan specified by the distributee in a direct
rollover.

This section shall apply to distributions made on or after January 1, 2006. Notwithstanding any provision of the plan to the contrary that would otherwise limit a distributee's election under this section, if a distributee does not make an election under Subsection A(1) and does not elect to receive the distribution directly, the plan administrator shall make such transfer to an individual retirement plan of a designated trustee or issuer pursuant to § 45-8C(1)(i). The plan administrator shall notify the distributee, in writing, within a reasonable period of time and as otherwise prescribed by law, that the distribution may be transferred to another individual retirement plan.

Includes an employee or former employee. In addition, the
employee's or former employee's surviving spouse and the employee's
or former employee's spouse or former spouse who is the alternate
payee under a qualified domestic relations order, as defined in Code
Section 414(p), are distributees with regard to the interest of the
spouse or former spouse.

A qualified trust described in Code Section 401(a), an individual
retirement account described in Code Section 408(a), an individual
retirement annuity described in Code Section 408(b), an annuity plan
described in Code Section 403(a), an annuity contract described in
Code Section 403(b), an eligible deferred compensation plan described
in Code Section 457(b), which is maintained by a state, political
subdivision of a state and which agrees to separately account for
amounts transferred into such plan from this plan.

Any distribution of all or any portion of the
balance to the credit of the distributee, except that an eligible
rollover distribution does not include: any distribution that is one
of a series of substantially equal periodic payments (not less frequently
than annually) made for the life or (life expectancy) of the distributee
or the joint lives (or joint life expectancies) of the distributee
and the distributee's designated beneficiary, or for a specified period
of 10 years or more; any distribution to the extent such distribution
is required under Code Section 401(a)(9); and the portion of any distribution
that is not includible in gross income (determined without regard
to the exclusion for net unrealized appreciation with respect to employer
securities).

For purposes of the direct rollover provisions
in this section of the plan, a portion of the distribution shall not
fail to be an eligible rollover distribution merely because the portion
consists of after-tax employee contributions that are not includible
in gross income. However, such portion may only be paid to an individual
retirement account or annuity described in Section 408(a) or (b) of
the Code, or to a qualified defined contribution plan described in
Section 401(a) or 403(a) of the Code that agrees to separately account
for amounts so transferred, including separately accounting for the
portion of such distribution which is includible in gross income and
the portion which is not includible.

Disability retirement. A participant who shall incur
a total and permanent disability before attaining normal retirement
age shall be entitled to a disability retirement benefit as of the
disability date.

Disability retirement benefit. A participant who retires due to a total and permanent disability, pursuant to Subsection A, shall be eligible for a disability retirement benefit in an amount equal to 50% of the participant's final monthly average salary determined as of the disability date; however, the disability benefit shall be no less than 50% of the member's salary at the time the disability was incurred, as defined pursuant to § 45-1, determined as of the disability date. Any member who received benefits for the same injuries under social security disability shall have the participant's disability benefits offset or reduced by the amount of such benefits.

Disability payments shall commence as of the first day of the month following the participant's disability date and continue until the earliest of the death of the participant, cessation of total and permanent disability, or attainment of normal retirement age (such a participant who attains normal retirement age shall thereafter receive a normal retirement benefit pursuant to § 45-4B).

A participant who shall fail to return within three months to employment as an employee of the employer upon cessation of total and permanent disability prior to attainment of normal retirement age shall be deemed to have terminated employment as of the disability date, shall not be entitled to any distribution of accumulated contributions pursuant to § 45-7B to the extent that the total amount of disability payments exceeds the value of the participant's accumulated contributions as of the disability date, and shall not be entitled to any other benefits under the plan on account of any aggregate service as of the disability date.

Verification of disability. The plan administrator
shall, in its sole discretion, determine whether a participant shall
have incurred a total and permanent disability. The plan administrator
shall rely on the report of a physician acceptable to the plan administrator.
If the plan administrator shall determine that a participant who is
totally and permanently disabled has recovered sufficiently to resume
active employment as a police officer or if a participant refuses
to undergo a medical examination as directed by the plan administrator
(such a medical examination may not be required more frequently than
once in any given twelve-month period), the payment of disability
retirement benefits shall cease.

Cessation of disability. A participant who is receiving
payment of disability retirement benefits under this plan must notify
the plan administrator of any change which may cause a cessation of
entitlement to receipt of such benefits hereunder. If a participant
fails to provide immediate notice to the plan administrator of any
such change in status and continues to receive payment of benefits
hereunder to which the participant is not entitled, then the plan
may take whatever action is necessary to recover any amount of improperly
paid amounts, including legal action or offsetting such amounts against
any future payments of retirement or other benefits under the plan,
including the costs of such actions.

Survivor benefit. If a participant shall die after commencement of retirement or disability benefit payments or after becoming eligible to receive retirement benefit payments under § 45-4A and before retirement benefit payments commence, a survivor benefit shall be paid to the surviving spouse or dependent child(ren), if any, of the participant pursuant to Subsection C in an amount equal to 50% of the benefit the participant was receiving or was eligible to receive as of the date of death.

Payment of survivor benefit. The survivor benefit
commences as of the first day of the month coincident with or immediately
following the date of death of the participant. The survivor benefit
shall be paid monthly to the surviving spouse of the participant,
if any, until the date of death of the surviving spouse. Upon the
death of the surviving spouse, or if there is no surviving spouse,
the survivor benefit shall be paid monthly in equal shares to the
surviving dependent child(ren) of the deceased participant until attainment
of age 18 or, if attending college, under or attaining the age of
23. The shares payable to the surviving dependent child(ren) shall
be adjusted as each child ceases to be eligible to receive a share
of the benefit hereunder.

Death of participant prior to retirement. If a participant shall die before payment of a benefit has commenced and without eligibility for payment of a survivor benefit under § 45-6B or E, the beneficiary shall be eligible to receive a distribution in an amount equal to the accumulated contributions of the participant as of the date of death hereunder; the amount of distribution of accumulated contributions shall be reduced by the amount of disability retirement benefits hereunder.

In the
event a participant dies as a result of the performance of his duties,
a survivor benefit shall be payable. A participant is presumed to
be killed in service if he/she dies due to a fatal heart attack or
stroke while on duty or not later than 24 hours after participating
in a physical training exercise or responding to an emergency.

In the event such a benefit becomes payable, the surviving spouse or dependent child(ren), if any, of the participant shall receive a benefit pursuant to § 45-6C in an amount equal to 100% of the member's salary at the time of death as defined pursuant to § 45-1. The benefit is funded directly by the Commonwealth of Pennsylvania, and the benefit is offset by any pension benefits payable and any workers' compensation that is payable. The benefit is adjusted annually for changes in the Consumer Price Index.

Rights of terminated employees. A participant who
shall cease to be an employee except as otherwise hereinbefore provided
shall have all interest and rights under this plan limited to those
contained in the following subsections of this section.

Distribution of accumulated contributions. A participant
whose employment with the employer shall terminate for any reason
other than death or total and permanent disability prior to attainment
of normal retirement age shall be entitled to receive a distribution
of accumulated contributions. Upon receipt of such accumulated contributions,
said participant and beneficiary shall not be entitled to any further
payments from the plan.

Deferred retirement benefit. A participant who shall have completed at least 12 years of aggregate service and whose employment shall terminate for any reason other than due to death or total and permanent disability prior to attainment of normal retirement age shall be entitled to elect by filing a written notice of the intention to vest with the plan administrator within 90 days of the date employment ceases to receive a deferred retirement benefit in lieu of a distribution of accumulated contributions under Subsection B. Such a deferred retirement benefit shall be equal to the participant's accrued benefit as of the date employment terminates and shall commence after application pursuant to § 45-5E and not earlier than the date which would be the participant's normal retirement date under the plan if the participant remained in employment until such date.

Plan administrator. The plan administrator shall be
the committee or the individual appointed by the Board who shall have
the power and authority to do all acts and to execute, acknowledge
and deliver all instruments necessary to implement and effectuate
the purpose of this plan. The plan administrator may delegate authority
to act on its behalf to any persons it deems appropriate. If a plan
administrator is not appointed, the Board shall be the plan administrator.

Police pension committee. The Board may appoint a
Police Pension Committee to administer the affairs of the plan. The
Board shall delegate such authority as it shall deem appropriate to
the Committee. The Committee, if one is appointed, shall consist of
not more than five members, one of whom, shall be a representative
of the Wilkins Police Association. Each member of the Committee shall
serve in that capacity until death, resignation, removal or otherwise.
Each member may resign by delivering written notice to the Board and
other members of the Committee. Vacancies on the Committee shall be
filled in the same manner as the position was originally filled by
the Board; provided, however, that the remaining members of the Committee
shall have full power to act pending the filling of such vacancies.

The plan administrator shall have full power and authority
to do whatever shall, in its judgment, be reasonably necessary for
the proper administration and operation of the plan. The interpretation
or construction placed upon any term or provision of the plan by the
plan administrator or any action of the plan administrator taken in
good faith shall, upon the Board's review and approval thereof, be
final and conclusive upon all parties hereto, whether employees, participants
or other persons concerned. By way of specification and not limitation
and except as specifically limited hereafter, the plan administrator
is authorized:

To select an individual retirement plan provider (either the state or a federally regulated financial institution) and invest funds in connection with the rollover of mandatory distributions as described in § 45-4O(2).

The plan administrator shall have no power to add
to, subtract from or modify the terms of the plan or change or add
to any benefits provided by the plan or to waive or fail to apply
any requirements of eligibility for benefits under the plan. Further,
the plan administrator shall have no power to adopt, amend, or terminate
the plan, to select or appoint any trustee or to determine or require
any contributions to the plan, said powers being exclusively reserved
to the Board.

Police Pension Committee organization. The Committee
may organize itself in any manner deemed appropriate to effectuate
its purposes hereunder, provided that it shall operate and act by
a majority of its members at the time in office either by vote at
a meeting or in writing without a meeting. The Committee shall appoint
a Chairman, a Secretary who may, but need not be, a Committee member,
and such other agents as it may deem advisable. The Committee may
authorize any one or more of its members to execute any document or
documents, including any application, request, certificate, notice,
consent, waiver or direction, and shall notify the Board, in writing,
of each such member so authorized; however, if no such member is so
authorized, the Chairman shall be deemed to be so authorized. Any
trustee or other fiduciary appointed hereunder shall accept and be
fully protected in relying upon any document executed by the designated
members (or the Chairman in the absence of a designation) as representing
a valid action by the Committee until the Committee shall file with
such fiduciary a written revocation of such designation. The Committee
shall meet at least one time in each plan year, and it shall maintain
and keep such records as are necessary for the efficient operation
of the plan or as may be required by any applicable law, regulation
or ruling and shall provide for the preparation and filing of such
forms, reports or documents as may be required to be filed with any
governmental agency or department and with the participants or other
persons entitled to benefits under the plan.

Plan administrator costs. The plan administrator shall
serve without compensation for services unless otherwise agreed by
the Board in writing. All reasonable expenses incident to the functioning
of the plan administrator, including, but not limited to, fees of
accountants, counsel, actuaries and other specialists, and other costs
of administering the plan, may be paid from the pension fund upon
approval by the Board to the extent permitted under applicable law
and not otherwise paid by the employer.

Hold harmless. No member of the Board, the plan administrator,
the enrolled actuary, nor any other person involved in the administration
of the plan shall be liable to any person on account of any act or
failure to act which is taken or omitted to be taken in good faith
in performing their respective duties under the terms of this plan.
To the extent permitted by law, the employer shall, and hereby does
agree to, indemnify and hold harmless the plan administrator and each
successor and each of any such individual's heirs, executors and administrators,
and the delegates and appointees (other than any person, bank, firm
or corporation which is independent of the employer and which renders
services to the plan for a fee) from any and all liability and expenses,
including counsel fees, reasonably incurred in any action, suit or
proceeding to which he/she is or may be made a party by reason of
being or having been a member, delegate or appointee of the plan administrator,
except in matters involving criminal liability, intentional or willful
misconduct. If the employer purchases insurance to cover claims of
a nature described above, then there shall be no right of indemnification
except to the extent of any deductible amount under the insurance
coverage or to the extent of the amount the claims exceed the insured
amount.

Approval of benefits. The plan administrator shall
review and approve or deny any application for retirement benefits
within 30 days following receipt thereof or within such longer time
as may be necessary under the circumstances. Any denial of an application
for retirement benefits shall be in writing and shall specify the
reason for such denial.

Appeal procedure. Any person whose application for
retirement benefits is denied, who questions the amount of benefit
paid, who believes a benefit should have commenced which did not so
commence or who has some other claim arising under the plan ("claimant")
shall first seek a resolution of such claim under the procedure hereinafter
set forth.

Any claimant shall file a notice of the claim with
the plan administrator which shall fully describe the nature of the
claim. The plan administrator shall review the claim and make an initial
determination approving or denying the claim.

If the claim is denied in whole or in part, the plan
administrator shall, within 90 days (or such other period as may be
established by applicable law) from the time the application is received,
mail notice of such denial to the claimant. Such ninety-day period
may be extended by the plan administrator if special circumstances
so require for up to 90 additional days by the plan administrator's
delivering notice of such extension to the claimant within the first
ninety-day period. Any notice hereunder shall be written in a manner
calculated to be understood by the claimant and, if a notice of denial,
shall set forth the specific plan provisions on which the denial is
based, an explanation of additional material or information, if any,
necessary to perfect such claim and a statement of why such material
or information is necessary, and an explanation of the review procedure.

Upon receipt of notice denying the claim, the claimant
shall have the right to request a full and fair review by the Board
of the initial determination. Such request for review must be made
by notice to the Board within 60 days of receipt of such notice of
denial. During such review, the claimant or a duly authorized representative
shall have the right to review any pertinent documents and to submit
any issues or comments in writing. The Board shall, within 60 days
after receipt of the notice requesting such review (or in special
circumstances, such as where the Board in its sole discretion holds
a hearing, within 120 days of receipt of such notice), submit its
decision in writing to the person or persons whose claim has been
denied. The decision shall be final, conclusive and binding on all
parties, shall be written in a manner calculated to be understood
by the claimant and shall contain specific references to the pertinent
plan provisions on which the decision is based.

Any notice of a claim questioning the amount of a
benefit in pay status shall be filed within 90 days following the
date of the first payment which would be adjusted if the claim is
granted unless the plan administrator allows a later filing for good
cause shown.

A claimant who does not submit a notice of a claim
or a notice requesting a review of a denial of a claim within the
time limitations specified above shall be deemed to have waived such
claim or right to review.

Nothing contained herein is intended to abridge any
right of a claimant to appeal any final decision hereunder to a court
of competent jurisdiction under 2 Pa.C.S.A. § 752. No decision
hereunder is a final decision from which such an appeal may be taken
until the entire appeal procedure of this subsection of the plan has
been exhausted.

The Board is hereby authorized to hold and supervise
the investment of the assets of the pension fund, subject to the provisions
of the laws of the commonwealth and of this plan and any amendment
thereto.

The pension fund shall be used to pay benefits as
provided in the plan and, to the extent not paid directly by the employer,
to pay the expenses of administering the plan pursuant to authorization
by the employer.

The employer intends the plan to be permanent and
for the exclusive benefit of its employees. It expects to make the
contributions to the pension fund required under the plan. The employer
shall not be liable in any manner for any insufficiency in the pension
fund; benefits are payable only from the pension fund and only to
the extent that there are monies available therein. The pension fund
will consist of all funds held by the employer under the plan, including
contributions made pursuant to the provisions hereof and the investments,
reinvestments and proceeds thereof. The pension fund shall be held,
managed, and administered pursuant to the terms of the plan. Except
as otherwise expressly provided in the plan, the employer has exclusive
authority and discretion to manage and control the pension fund assets.
The employer may, however, appoint a trustee, custodian or investment
manager, at its sole discretion.

Powers and duties of employer. With respect to the
pension fund, the employer shall have the following powers, rights
and duties, in addition to those vested in it elsewhere in the plan
or by law, unless such duties are delegated:

To retain in cash so much of the pension fund as it
deems advisable and to deposit any cash so retained in any bank or
similar financial institution (including any such institution which
may be appointed to serve as trustee hereunder) without liability
for interest thereon.

To invest and reinvest the principal and income of
the fund and keep said fund invested, without distinction between
principal and income, in securities which are at the time legal investments
for fiduciaries under the Pennsylvania Fiduciaries Investment Act
or as the same may be subsequently modified or amended.

To sell property held in the fund at either public
or private sale for cash or on credit at such times as it may deem
appropriate; to exchange such property; to grant options for the purchase
or exchange thereof.

To consent to and participate in any plan of reorganization,
consolidation, merger, extension or other similar plan affecting property
held in the fund; to consent to any contract, lease, mortgage, purchase,
sale or other action by any corporation pursuant to any such plan.

To place money at any time in a deposit bank deemed
to be appropriate for the purposes of this plan no matter where situated,
including, in those cases where a bank has been appointed to serve
as trustee hereunder, the savings department of its own commercial
bank.

In addition to the foregoing powers, the employer
shall also have all of the powers, rights, and privileges conferred
upon trustees by the Pennsylvania Fiduciaries Investment Act or as
the same may be subsequently modified or amended and the power to
do all acts, take all proceedings and execute all rights and privileges,
although not specifically mentioned herein, as the employer may deem
necessary to administer the pension fund.

To maintain and invest the assets of this plan on
a collective and commingled basis with the assets of other pension
plans maintained by the employer, provided that the assets of each
respective plan shall be accounted for and administered separately.

To invest the assets of the pension fund in any collective
commingled trust fund maintained by a bank or trust company, including
any bank or trust company which may act as a trustee hereunder. In
this connection, the commingling of the assets of this plan with assets
of other eligible, participating plans through such a medium is hereby
specifically authorized. Any assets of the plan which may be so added
to such collective trusts shall be subject to all of the provisions
of the applicable declaration of trust, as amended from time to time,
which declaration, if required by its terms or by applicable law,
is hereby adopted as pan of the plan to the extent of the participation
in such collective or commingled trust fund by the plan.

To make any payment or distribution required or advisable
to carry out the provisions of the plan, provided that if a trustee
is appointed by the employer, such trustee shall make such distribution
only at the direction of the employer.

To retain any funds or property subject to any dispute
without liability for the payment of interest thereon and to decline
to make payment or delivery thereof until final adjudication is made
by a court of competent jurisdiction.

To pay, and to deduct from and charge against the
pension fund, any taxes which may be imposed thereon, whether with
respect to the income, property or transfer thereof, or upon or with
respect to the interest of any person therein, which the fund is required
to pay; to contest, in its discretion, the validity or amount of any
tax, assessment, claim or demand which may be levied or made against
or in respect of the pension fund, the income, property or transfer
thereof or in any matter or thing connected therewith.

To appoint any persons or firms (including but not
limited to, accountants, investment advisors, counsels, actuaries,
physicians, appraisers, consultants, professional plan administrators
and other specialists) or otherwise act to secure specialized advice
or assistance as it deems necessary or desirable in connection with
the management of the fund; to the extent not prohibited by applicable
law, the employer shall be entitled to rely conclusively upon and
shall be fully protected in any action or omission taken by it in
good faith reliance upon the advice or opinion of such persons or
firms, provided such persons or firms were prudently chosen by the
employer, taking into account the interests of the participants and
beneficiaries and with due regard to the ability of the persons or
firms to perform their assigned functions.

To retain the services of one or more persons or firms
for the management of (including the power to acquire and dispose
of) all or any part of the fund assets, provided that each of such
persons or firms is registered as an investment advisor under the
Investment Advisors Act of 1940, is a bank (as defined in that Act),
or is an insurance company qualified to manage, acquire or dispose
of pension trust assets under the laws of more than one state; in
such event, the employer shall follow the directions of such investment
manager or managers with respect to the acquisition and disposition
of fund assets, but shall not be liable for the acts or omissions
of such investment manager or managers, nor shall it be under any
obligation to review or otherwise manage any fund assets which are
subject to the management of such investment manager or managers.
If the employer appoints a trustee, the trustee shall not be permitted
to retain such an investment manager except with the express written
consent of the employer.

Common investments. The employer shall not be required
to make separate investments for individual participants or to maintain
separate investments for each participant's account but may invest
contributions and any profits or gains therefrom in common investments.

Compensation and expenses of appointed trustee. If
a trustee is appointed, the trustee shall be entitled to such reasonable
compensation as shall from time to time be agreed upon by the employer
and the trustee unless such compensation is prohibited by law. Such
compensation, and all expenses reasonably incurred by the trustee
in carrying out its functions, shall constitute a charge upon the
employer or the pension fund, which may be executed at any time after
30 days' written notice to the employer. The employer shall be under
no obligation to pay such costs and expenses, and, in the event of
its failure to do so, the trustee shall be entitled to pay the same,
or to be reimbursed for the payment thereof, from the pension fund.

Periodic accounting. If a trustee is appointed, the
pension fund shall be evaluated annually or at more frequent intervals
by the trustee and a written accounting rendered as of each fiscal
year end of the fund and as of the effective date of any removal or
resignation of the trustee and such additional dates as requested
by the employer, showing the condition of the fund and all receipts,
disbursements and other transactions effected by the trustee during
the period covered by the accounting based on fair market values prevailing
as of such date.

Value of the pension fund. All determinations as to
the value of the assets of the pension fund and as to the amount of
the liabilities thereof shall be made by the employer or its appointed
trustee, whose decisions shall be final and conclusive and binding
on all parties hereto, to the participants and beneficiaries and their
estates. In making any such determination, the employer or trustee
shall be entitled to seek and rely upon the opinion of or any information
furnished by brokers, appraisers and other experts and shall also
be entitled to rely upon reports as to sales and quotations, both
on security exchanges and otherwise as contained in newspapers and
in financial publications.

Amendment of the plan. The employer may amend this
plan at any time or from time to time by an instrument in writing
executed in the name of the employer under its municipal seal by officers
duly authorized to execute such instrument and delivered to the Board;
provided, however:

That no amendment shall deprive any participant or
any beneficiary of a deceased participant of any of the benefits to
which each is entitled under this plan with respect to contributions
previously made;

That no amendment shall provide for the use of funds or assets held under this plan other than for the benefit of employees, and no funds contributed to this plan or assets of this plan shall, except as provided in Subsection E, ever revert to or be used or enjoyed by the employer; and

That no amendment to the plan which provides for a benefit modification shall be made unless the cost estimate described in § 45-11C has been prepared and presented to the Board in accordance with the Act.

Automatic termination of contributions. Subject to
the provisions of the Act governing financially distressed municipalities,
the liability of the employer to make contributions to the pension
fund shall automatically terminate upon liquidation or dissolution
of the employer, upon its adjudication as a bankrupt or upon the making
of a general assignment for the benefit of its creditors.

In the event of the termination of the plan, all amounts
of vested benefits accrued by the affected participants as of the
date of such termination, to the extent funded on such date, shall
be nonforfeitable hereunder. In the event of termination of the plan,
the employer shall direct either that the plan administrator continue
to hold the vested accrued benefits of participants in the pension
fund in accordance with the provisions of the plan (other than those
provisions related to forfeitures) without regard to such termination
until all funds have been distributed in accordance with the provisions;
or that the plan administrator immediately distribute to each participant
an amount equal to the vested accrued benefit to the date.

If there are insufficient assets in the pension fund
to provide for all vested accrued benefits as of the date of plan
termination, priority shall first be given to the distribution of
any amounts attributable to mandatory or voluntary employee contributions
before assets are applied to the distribution of any vested benefits
attributable to other sources hereunder.

All other assets attributable to the terminated plan
shall be distributed and disposed of in accordance with the provisions
of applicable law and the terms of any instrument adopted by the employer
which effects such termination.

Residual assets. If all liabilities to vested participants
and any others entitled to receive a benefit under the terms of the
plan have been satisfied and there remain any residual assets in the
pension fund, such residual assets remaining shall be returned to
the employer insofar as such return does not contravene any provision
of law, and any remaining balance, in excess of employer contributions,
shall be returned to the commonwealth.

Exclusive benefit rule. In the event of the discontinuance
and termination of the plan as provided herein, the employer shall
dispose of the pension fund in accordance with the terms of the plan
and applicable law; at no time prior to the satisfaction of all liabilities
under the plan shall any part of the corpus or income of the pension
fund, after deducting any administrative or other expenses properly
chargeable to the pension fund, be used for or diverted to purposes
other than for the exclusive benefit of the participants in the plan,
their beneficiaries or their estates.

The plan's actuary shall perform an actuarial valuation
at least biennially unless the employer is applying or has applied
for supplemental state assistance pursuant to Section 603 of the Act,
whereupon actuarial valuation reports shall be made annually.

The expenses attributable to the preparation of any
actuarial valuation report or investigation required by the Act or
any other expense which is permissible under the terms of the Act
and which are directly associated with administering the plan shall
be an allowable administrative expense payable from the assets of
the pension fund. Such allowable expenses shall include but not be
limited to the following:

Legitimate travel and education expenses for
plan officials; provided, however, that the municipal officials of
the employer, in their fiduciary role, shall monitor the services
provided to the plan to ensure that the expenses are necessary, reasonable
and benefit the plan; and further provided, that the plan administrator
shall document all such expenses item by item and, where necessary,
hour by hour.

The chief administrative officer of the plan shall
determine the financial requirements of the plan on the basis of the
most recent actuarial report and shall determine the minimum municipal
obligation of the employer with respect to funding the plan for any
given plan year. The chief administrative officer shall submit the
financial requirements of the plan and the minimum municipal obligation
of the employer to the Board annually and shall certify the accuracy
of such calculations and their conformance with the Act.

Benefit plan modifications. Prior to the adoption
of any benefit plan modification by the employer, the chief administrative
officer of the plan shall provide to the Board a cost estimate of
the proposed benefit plan modification. Such estimate shall be prepared
by an approved actuary, which estimate shall disclose to the Board
the impact of the proposed benefit plan modification on the future
financial requirements of the plan and the future minimum municipal
obligation of the employer with respect to the plan.

Employment rights. No employee of the employer nor
anyone else shall have any rights whatsoever against the employer
or the plan administrator as a result of this plan except those expressly
granted hereunder. Participation in this plan shall not give any right
to any employee to be retained in the employ of the employer nor shall
it interfere with the right of the employer to discharge any employee
and to deal with such employee without regard to the effect such treatment
might have upon participation in this plan.

Meaning of certain words. For purposes of this plan,
the masculine gender shall include the feminine gender and the singular
shall include the plural, and vice versa, in all cases wherever the
person or context shall plainly so require. Headings of sections and
subsections are inserted only for convenience of reference and are
not to be considered in the construction of the plan.

Information to be furnished by the employer. The employer
shall furnish to the plan administrator (and, where applicable, the
trustee) information in the employer's possession as the plan administrator
and the trustee shall require from time to time to perform their duties
under the plan.

Severability of provisions. Should any provisions
of this plan be held illegal or invalid for any reason, said illegality
or invalidity shall not affect the remaining parts of this plan, and
the plan shall be construed and enforced as if said illegal and invalid
provisions had never been inserted herein.

Incapacity of participant. If any participant shall
be physically or mentally incapable of receiving or acknowledging
receipt of any payment of pension benefits hereunder, the plan administrator,
upon the receipt of satisfactory evidence that such participant is
so incapacitated and that another person or institution is maintaining
the participant and that no guardian or committee has been appointed
for the participant, may provide for such payment of pension benefits
hereunder to such person or institution so maintaining the participant,
and any such payments so made shall be deemed for every purpose to
have been made to such participant.

Pension fund for sole benefit of participants. The
income and principal of the pension fund are for the sole use and
benefit of the participants covered hereunder, and to the extent permitted
by law, shall be free, clear and discharged from and are not to be
in any way liable for debts, contracts or agreements, now contracted
or which may hereafter be contracted, and from all claims and liabilities
now or hereafter incurred by any participant or beneficiary.

Benefits for a deceased participant. If any benefit
shall be payable under the plan to or on behalf of a participant who
has died, if the plan provides that the payment of such benefits shall
be made to the participant's estate, and if no administration of such
participant's estate is pending in the court of proper jurisdiction,
then the plan administrator, at its sole option, may pay such benefits
to the surviving spouse of such deceased participant, or, if there
is no surviving spouse, to such participant's then living issue, per
stirpes; provided, however, that nothing contained herein shall prevent
the plan administrator from insisting upon the commencement of estate
administration proceedings and the delivery of any such benefits to
a duly appointed executor or administrator.

Assets of the fund. Nothing contained herein shall
be deemed to give any participant or beneficiary any interest in any
specific property of the pension fund or any right except to receive
such distributions as are expressly provided for under the plan.

Personal liability. Subject to the provisions of the
Act and unless otherwise specifically required by other applicable
laws, no past, present or future officer or agent of the employer
or plan administrator shall be personally liable to any participant,
beneficiary or other person under any provision of the plan.

Construction of document. This plan may be executed
and/or conformed in any number of counterparts, each of which shall
be deemed an original, and shall be construed and enforced according
to the laws of the commonwealth, excepting such commonwealth's choice
of law rules.

Wilkins Township, being a member municipality
of the Pennsylvania Municipal Retirement System, hereby elects to
change its member benefits in that system as authorized by the Pennsylvania
Municipal Retirement Law, Act 15 of 1974, as amended,[1] and does hereby agree to be bound by all the requirements
and provisions of said Law, and to assume all obligations, financial
and otherwise, placed upon member municipalities. All references hereafter
shall be based on benefits negotiated between the Board and the municipality
under the provisions of Article IV of the Pennsylvania Municipal Retirement
Law.

Membership in the Pennsylvania Municipal Retirement
System shall be mandatory for all permanent, municipal employees of
the Township. Membership for elected officials and employees hired
on a temporary or seasonal basis is prohibited, as is membership for
individuals paid only on a fee basis.

Credit for prior service for original members
is granted for each year or partial year thereof that the member was
employed by the Township from original date of hire or the expiration
of the member's probationary period if one so existed. Benefits provided
to members in the agreement dated July 29, 2002, shall accrue based
on all credited services granted and earned in accordance with this
section.

Payment for any obligation established by the
adoption of this article and the agreement between the system and
Wilkins Township shall be made by the Township in accordance with
the Pennsylvania Municipal Retirement Law and Act 205 of 1984, the
Municipal Pension Plan Funding Standard and Recovery Act.[1]

As part of this article, the Township agrees
that the system shall provide the benefits set forth in the agreement
between the Board and Wilkins Township, dated July 29, 2002. The passage
and adoption of this article by Wilkins Township is an official acceptance
of said agreement and the financial obligations resulting from the
administration of said benefit package. Wilkins Township hereby assumes
all liability for any unfundedness created or which may be created
due to the acceptance of the benefit structure outlined in the above-referenced
agreement.

Wilkins Township intends this article to be
the complete authorization of the Township plan and it shall become
effective and specifically repeals Ordinance Number 808 either immediately
or on May 1, 2002, which is the effective date of the amended agreement
dated July 29, 2002, between the Pennsylvania Municipal Retirement
System and Wilkins Township, whichever is later.

A duly certified copy of this article and the
referenced agreement shall be filed with the Pennsylvania Municipal
Retirement System of the Commonwealth of Pennsylvania. Membership
for the municipal employees of Wilkins Township in the Pennsylvania
Municipal Retirement System shall be effective the first day of January,
1962, with the revised plan structure reflected in the agreement dated
July 29, 2002, effective the first day of May, 2002.